HILLSBOROUGH COUNTY — February marks one year since Senate Bill 328, an amendment to the “Live Local Act,” became law.

What You Need To Know

  • February marks one year since Senate Bill 328, an amendment to the “Live Local Act,” became law

  • Significant state funding has been allocated for affordable housing; however, challenges persist

  • Some financial institutions are having trouble with the fact that the tax credits aren't certain

Significant state funding has been allocated for affordable housing, but challenges persist. Stakeholders in the real estate, development and construction sectors convened in Tampa to evaluate the law’s effects on affordable housing.

“There are some challenges in making it happen because building for affordable housing is very different from building market housing,” said Kimberly Overman, the founder of the Housing Leadership Council of Tampa Bay Inc. It is a nonprofit that works with diverse stakeholders to tackle the challenges of providing affordable and workforce housing. 

Lawmakers hoped that passing the "Live Local Act" would create more affordable housing. It has allowed the state to offer options through initiatives like the Hometown Heroes Program and the State Apartment Incentive Loan Program. However, Overman says there have been some road blocks. Live Local incentivizes developers by providing substantial tax credits for building affordable housing.

“Some financial institutions are having trouble with the fact that the tax credits, it's part of that tax that capital stacked for building the project, aren't certain,” said Overman.

As a result, she states that some lenders fear these projects can't be financed, which has delayed development. This was one of several issues discussed at an affordable housing panel by the Real Estate Investment Council. Overman mentions that some local governments struggle to adjust to the "Live Local Act."

“It basically tells governments they don’t have the ability to stop a project. So, in other words, it basically tells the folks at the local level that they don't have the ability to stop a project that's being built on an industrial or commercial project,” said Overman.

Concerns have led some local jurisdictions to opt out of the "Live Local Act" if they can demonstrate they already have sufficient affordable housing. When the new legislative session begins in March, members of Florida’s Affordable Housing Advisory Committee are hoping the following will be addressed. 

“Making sure Sadowski (housing trust fund) is protected, which is the statewide fund making sure ship funds are available, making sure financing opportunities for our veterans and first responders are still available," Overman said.

Recent storms have made things even more complicated.

“The most recent loss in housing inventory is a consequence of Helene and Milton and Debby prior to that are going to cause a greater deficit in available, affordable housing," Overman said.

Officials say that simple supply and demand will continue to affect the housing market as well. Next Thursday, the Florida Housing Coalition will be hosting another workshop on affordable housing pre-development in Orlando.